Smarter Property Investing

Property investing is on the minds and in the conversations of many Australians. Property is one of the best options for investment, but it also carries some risks.

Whether you’re investing for the 1st or 10th time, it’s important to invest wisely as investment mistakes are costly in property. In fact, almost everyone knows of someone who has been significantly worse off for investing in property. When I hear their stories, I can appreciate what it was in their strategy that appealed to them (usually a form of get-rich-quick scheme) and where perhaps the same $ investment might have seen drastically different results for those people.

Understand that Property is a Long-Term Strategy ... and it's boring!

Yes! You read that right. The best investment involves exceptional due diligence on the property you wish to purchase (ie, use a buyer's agent to do due diligence on the property you're purchasing, if nothing else), effective property management so that the right tenant is selected to rent your home, and then .... nothing! That's right, if you've ought the right home and have the best tenant in it, you'll have steady rent, no expenses other than the usual repairs and maintenance, your mortgage and rates etc, and that's it - for years. It's a set-and-forget approach, and it's boring. This is the best investment. If followed correctly, in 10 year's time, you ought to have doubled your investment and this is where the fun begins as you'll now have a good amount of equity, no matter what type of loan you had or which lender you choose.

The truth is that most newbie investors think that investing in property should be more work, more exciting, and come with more action. The reality is that short-term gains in real estate are speculative and risky. These are not the choices that a strategic investor will make. Buy-and-flip, subdivision etc - these are all risky options. Yes, they can work and make you a lot of money: they can also fail miserably. The primary reason that real estate is a long-term investment option is that it lacks liquidity. Asset classes that are less liquid are best suited to a long-term approach because they cannot easily be converted to cash. Hence, the short-term investment approaches are actually at odds with the asset class of property.

Consult Professionals

The vast majority of people consult a professional when they are making big decisions. We readily, easily and without thought consult accountants, lawyers, doctors, stock brokers, plumbers, builders, conveyancers, mortgage brokers etc. Buyer's agents are not new in Australia, but awareness of buyer's agents is still growing. If you’re buying a property - whether to live in or to invest in - at the very least, a due diligence report from a buyer's agent is a very small sum to pay to be sure you're on the right path.

Understanding property markets takes time. Sydney is not one market. Sydney has many markets within markets. Many people have some knowledge of property and property markets, but this knowledge must be combined with the intimate knowledge of the property of interest. The market might be brilliant, but the property not so. Or vice versa. You'll have a conveyancer look over your contract for sale/purchase ... will you also have a buyer's agent do the due diligence so that you can move forward with confidence?

If you'd like more information on our unique and AFFORDABLE buyer's agent service that lets you lead the way with full access to all the advice and information you need to make an empowered property purchase decision, contact me today by scrolling to the bottom of this page: https://mmba.com.au/buyer-support/